New Zealand increased its key interest rate, becoming the first developed
nation to exit record-low borrowing costs, in a sign the world economy is
picking up steam after years of anaemic growth.

The Reserve Bank of New Zealand raised its benchmark interest rate by quarter
of a percentage point to 2.75 per cent after holding it at a record low for
three years. The bank indicated it plans to continue raising rates to about
5 per cent by March 2017.

The South Pacific nation of 4.5 million has benefited from booming demand in
China for its milk products and the